Figure 9-4

question 26

Multiple Choice

Figure 9-4. The figure shows a utility function for Dexter.

-Refer to Figure 9-4. From the appearance of the utility function, we know that

• A) Dexter is risk averse.
• B) Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars.
• C) the property of decreasing marginal utility applies to Dexter.
• D) All of the above are correct.

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Definitions:

Profane

Not relating to that which is sacred or religious; secular.

Everyday World

The realm of daily life where individuals engage in routine activities and interactions.

Durkheim

Emile Durkheim, a foundational French sociologist, is known for his works on social solidarity, collective conscience, and the role of social integration in maintaining societal order.

Profane

That which is ordinary or not sacred, often referring to everyday objects and concerns outside the realm of the religious or holy.